Those of you who use credit cards should read this.

[Jeff R.]

I started using CC's again after digging out of some debit that was accumulated to pay for my wedding a few years back. I now use my Discover card frequently and get the points/cash back option. I aslo have a Visa the I can put toward flights. All my CC's are set up to autopay the full amount that is on the statement balance so I do not get any interest fees. One new tidbit I recently found very neat was on my Discover, the cash back bonus is able to used directly on Amazon.com. I thought that was nifty

One other side note.....I have always heard to have at least 1 or 2 cards that have the ability to absorb a large expense, just in case of an emergency that you are in and to not have access to cash...you know like in case you need to pay a Ransome to a Mexican Drug Cartel when your wife gets kidnapped on your Vacation....the usual stuff like that.

 

[GO-NAD!]

Canada has a completely different set of rules regarding credit card processing, but you don't pay credit card companies directly normally. You use a provider who handles PCI(which is very expensive), batch processing, the servers and all the back end processing. Your POS provider would have a list of these compatible with their software.

There is a difference between a credit transaction and a debit transaction. A debit doesn't typically go through a batch process while credit does. Before the batch is processed you can actually void the credit transaction. You can't do this with debit. Debit must be returned. You also can't store a Debit card for customer convenience.

Oh, I understand we have different rules. I assume they're different in every country. The only point I wanted to bring up, is that CC companies take a cut from every transaction made using their cards. And no, we don't pay the CC company directly - most cards are issued by banks, or retailers themselves. Everyone is looking for a piece of the pie.

 

[KEW]

I started using CC's again after digging out of some debit that was accumulated to pay for my wedding a few years back. I now use my Discover card frequently and get the points/cash back option. I aslo have a Visa the I can put toward flights. All my CC's are set up to autopay the full amount that is on the statement balance so I do not get any interest fees. One new tidbit I recently found very neat was on my Discover, the cash back bonus is able to used directly on Amazon.com. I thought that was nifty

One other side note.....I have always heard to have at least 1 or 2 cards that have the ability to absorb a large expense, just in case of an emergency that you are in and to not have access to cash...<strike>you need to pay a Ransome to a Mexican Drug Cartel when your wife gets kidnapped on your Vacation</strike> you run into a couple of senoritas offering a week long 3-way....the usual stuff like that.

Fixed it for you (your example was bumming me out)!

 

[Jeff R.]

Good catch KEW.....I must have had my auto grammar correction on again.

 

[Midwesthonky]

Any consumer who paid with a CC paid the fees that were built into pricing. For small business owners like merchants, the CC fees really eat up a bunch of their margin. Bigger retailers have negotiating power with the CC guys to get lower fees, but the small guys get bend over without lube. There is a small butcher that I use for all of my meat purchases due to the quality. I used to use cash so he wouldn't have to pay out 3.75% to the CC processors. On small purchases, that can put the retailer into a loss. Like gas stations, at only about $.06 per gallon, the CC fees can easily wipe out any margin.

There are different laws/protections between the US and Canada. In the US, any credit card fraud is the responsibility of the merchant, not the CC company. So that is why the CC vendors (Visa, Mastercard, etc.) really have done absolutely nothing to combat CC fraud like what you find in Canada or Europe. They have no liability and get their cut no matter what. All the incentive to just leave it alone. That's also why they fought having CC fees made transparent or tacked on extra because that would drive down CC usage and reduce their cut. Hundreds of Billions on the line so yeah, they would definitely be interested in doing anything and everything to keep the money rolling in.

 

[BMXTRIX]

Love my Southwest card - that's about all I've got to say. We charged over $8,000 a month last year on it and I can pretty much fly anywhere for free and now have a companion pass so my wife flies with me for free as well. Best part was that because I'm running my own company, almost all the charges were for equipment that I was purchasing for customers. A little wrenching to get a credit card bill for $19,000, but I pay it off on time EVERY month, so zero additional fees for me. Works out nicely.

 

[lsiberian]

One other side note.....I have always heard to have at least 1 or 2 cards that have the ability to absorb a large expense, just in case of an emergency that you are in and to not have access to cash...you know like in case you need to pay a Ransome to a Mexican Drug Cartel when your wife gets kidnapped on your Vacation....the usual stuff like that.

Visa is everywhere you want to be. Even the cartel accepts it.

 

[fuzz092888]

I think that something else that can weigh in on a decision to spend a bit more than you might be able to pay off immediately are the emotional benefits, which may be worth the interest costs. If you have good credit and have a good rate, then it might be even less of an issue.

For instance, if you want a new subwoofer and you've got $500, but the new one is going to cost $1000 and your interest rate is good, perhaps the enjoyment you gain from having the sub now and for the next 5 months is worth however much you'll be paying in interest on the $500 you can't pay off now.

Another example would be a family vacation. You take your family and kids to disneyworld (or somewhere nice) for a vacation that will take a few paychecks to pay off, so you say to yourself that the enjoyment everyone has from that is worth a little extra money to make happen.

I'm not advocating that people spend more than they have the money for, or to count on money they don't already have, but I can definitely see where a little overspending can be worth it. I'm guilty of both situations. A pair of speakers for the first and a rental car for the second. I love the speakers and use them everyday, and convertible mustang rental was more than worth it while cruising around Florida

YMMV

 

[STRONGBADF1]

I think that something else that can weigh in on a decision to spend a bit more than you might be able to pay off immediately are the emotional benefits, which may be worth the interest costs. If you have good credit and have a good rate, then it might be even less of an issue.

For instance, if you want a new subwoofer and you've got $500, but the new one is going to cost $1000 and your interest rate is good, perhaps the enjoyment you gain from having the sub now and for the next 5 months is worth however much you'll be paying in interest on the $500 you can't pay off now.

Another example would be a family vacation. You take your family and kids to disneyworld (or somewhere nice) for a vacation that will take a few paychecks to pay off, so you say to yourself that the enjoyment everyone has from that is worth a little extra money to make happen.

I'm not advocating that people spend more than they have the money for, or to count on money they don't already have, but I can definitely see where a little overspending can be worth it. I'm guilty of both situations. A pair of speakers for the first and a rental car for the second. I love the speakers and use them everyday, and convertible mustang rental was more than worth it while cruising around Florida

YMMV

The problem with this line of thinking is if you do this and then your cars transmission fails and needs to fixed so you can get to work and then the refrigerator dies and then it's Christmas...

You run the risk of digging a hole.

 

[fuzz092888]

The problem with this line of thinking is if you do this and then your cars transmission fails and needs to fixed so you can get to work and then the refrigerator dies and then it's Christmas...

You run the risk of digging a hole.

This is true, but that's where being responsible and knowing your limits comes into play. For the two situations I cited for myself, the total cost of each item wasn't being put on the card to accrue interest, and they were both spaced far apart, by years. I had about 50% of the price of each ready to pay off immediately.

IMHO, if you can't gauge what you have the money for and what you can pay off in a reasonable amount of time, then you probably shouldn't have cards in the first place

I think the problem isn't the line of thinking, it's the person behind the line of thinking.

 

[Grador]

This is true, but that's where being responsible and knowing your limits comes into play. For the two situations I cited for myself, the total cost of each item wasn't being put on the card to accrue interest, and they were both spaced far apart, by years. I had about 50% of the price of each ready to pay off immediately.

IMHO, if you can't gauge what you have the money for and what you can pay off in a reasonable amount of time, then you probably shouldn't have cards in the first place

I think the problem isn't the line of thinking, it's the person behind the line of thinking.

I know very few people I would trust to do that, including myself. I keep a slop fund of cash, the second I run out of that and start justifying things beyond because of "good credit" and "I'll pay it off quickly" it'll all be over.

 

[STRONGBADF1]

This is true, but that's where being responsible and knowing your limits comes into play. For the two situations I cited for myself, the total cost of each item wasn't being put on the card to accrue interest, and they were both spaced far apart, by years. I had about 50% of the price of each ready to pay off immediately.

IMHO, if you can't gauge what you have the money for and what you can pay off in a reasonable amount of time, then you probably shouldn't have cards in the first place

I think the problem isn't the line of thinking, it's the person behind the line of thinking.

True. If you don't have the money and you don't know what your future unseen bills are then you shouldn't be the person thinking like that. If you have the money you should pay it off before interest accrues...unless you are trying to build up your credit history. (be careful)

This is what I don't get. I've known people with $3000 on credit cards that would pay the minimum plus say $50 a month when they have $5000 in there savings account. I'd tell them that they would be in better off if they would just pay the card off. It's not like they are living paycheck to paycheck. The excuse not to is "what if I have an emergency? I'll need the money." The look on their face when I say "That's what the available credit on the card is for." It's like a dog when it turns it head sideways to try and figure something out... Some people are just bad with credit cards and money in general.

IMHO, if you can't gauge what you have the money for and what you can pay off in a reasonable amount of time, then you probably shouldn't have cards in the first place

I think the problem isn't the line of thinking, it's the person behind the line of thinking.

Very true. The fact that you are conscious that there are limits and ramifications makes you smarter than most governments in the world!

YAA for President!

 

[fuzz092888]

True. If you don't have the money and you don't know what your future unseen bills are then you shouldn't be the person thinking like that. If you have the money you should pay it off before interest accrues...unless you are trying to build up your credit history. (be careful)

This is what I don't get. I've known people with $3000 on credit cards that would pay the minimum plus say $50 a month when they have $5000 in there savings account. I'd tell them that they would be in better off if they would just pay the card off. It's not like they are living paycheck to paycheck. The excuse not to is "what if I have an emergency? I'll need the money." The look on their face when I say "That's what the available credit on the card is for." It's like a dog when it turns it head sideways to try and figure something out... Some people are just bad with credit cards and money in general.


Very true. The fact that you are conscious that there are limits and ramifications makes you smarter than most governments in the world!

YAA for President!

Here here! Agreed on all points

 

[Adam]

If...you don't know what your future unseen bills are...

Ummmm, none of us do. They're unseen. Seriously - nobody knows what the future is going to bring. We can pack away money like good boys and girls, but it doesn't mean that it'll be enough. Heck, maybe I'll get sued for $10M because I gained a monopoly on awesomeness in the southwest. Nor do we know if the money will even matter. If it hits the fan and the financial system is taken out...well, it'll be the people who owed money that will be better off.

Wow, there's a future scenario where you'd want to have charged as much as possible. Goods will be worth more than a savings slip in that future. Take that.

 

[fuzz092888]

Ummmm, none of us do. They're unseen. Seriously - nobody knows what the future is going to bring. We can pack away money like good boys and girls, but it doesn't mean that it'll be enough. Heck, maybe I'll get sued for $10M because I gained a monopoly on awesomeness in the southwest. Nor do we know if the money will even matter. If it hits the fan and the financial system is taken out...well, it'll be the people who owed money that will be better off.

Wow, there's a future scenario where you'd want to have charged as much as possible. Goods will be worth more than a savings slip in that future. Take that.

Personally I was pulling for the fiscal cliff. I was going to max out my credit cards and pay them off with pencils and toilet paper

 

[GO-NAD!]

Personally I was pulling for the fiscal cliff. I was going to max out my credit cards and pay them off with pencils and toilet paper

Gently used toilet paper...?

 

[fuzz092888]

Gently used toilet paper...?

When you're lactose intolerant, but still eat dairy, gently and toilet paper do not belong in the same sentence

 

[GO-NAD!]

When you're lactose intolerant, but still eat dairy, gently and toilet paper do not belong in the same sentence

My brother-in-law is the same way. He was born in Nigeria, and as you probably know, lactose intolerance is common amongst Asians and Africans. I pity you guys - cheese and ice cream are food groups to me.

Wow, talk about thread derailing! From credit cards to screaming blow $hits in two posts. Must be a record.

 

[Adam]

...pencils and toilet paper

Which I imagine you use in similar locations...

 

[STRONGBADF1]

Ummmm, none of us do. They're unseen. Seriously - nobody knows what the future is going to bring. We can pack away money like good boys and girls, but it doesn't mean that it'll be enough. Heck, maybe I'll get sued for $10M because I gained a monopoly on awesomeness in the southwest. Nor do we know if the money will even matter. If it hits the fan and the financial system is taken out...well, it'll be the people who owed money that will be better off.

Wow, there's a future scenario where you'd want to have charged as much as possible. Goods will be worth more than a savings slip in that future. Take that.

Can I get a list of the extremest groups you're a member of?